Real Estate Watch – Centermac SD, Inc.

New Program for All Home Buyers

Double Your Down Payment With Equity Down Program

This program recently released is becoming popular to home buyers, allowing them to get into the home of their dreams with only 10% down payment. The program is designed to bring on a profit-sharing partner who will match the down payment with their 10%, so now the family has 20% down payment. As a result, the family can qualify for more home because their payment is lower and there is no PMI.

In return, the profit-sharing partner earns a return only on the market appreciation your home earns when you sell your home, and if there is a loss they share in that too. The family makes no payment to the profit-sharing partner. When the family goes to sell the home, the partner will get their initial investment back, plus a percentage of the market appreciation. For example, if the home was bought for $600k and sold 10 years later for $700k, the market appreciation would be $100k and the partner would earn a percentage of that money. They don’t get any of your paid-in equity or money you put into the house via renovations, etc. – all that money stays with you.

This program is truly a win-win for everyone. The percentage I have seen the partner get has been pretty reasonable, and as a prospective home buyer I would highly consider this program as it allows you to get a lower payment, allows you to not have to invest all your money in the down payment, and could help get you qualified for the home you really want. If you would like more information on this program and if it would be a good fit for your family, contact us!